Latest news with #KristalLi
Yahoo
20-05-2025
- Business
- Yahoo
Q1 2025 NIU Technologies Earnings Call
Kristal Li; Investor Relations Manager; NIU Technologies Yan Li; Chairman of the Board, Chief Executive Officer; NIU Technologies Fion Zhou; Chief Financial Officer; NIU Technologies Kyle Wu; Analyst; Citi Research Jing Chang; Analyst; CICC Michael Simmons; Analyst; Global View SA. Operator Good day ladies and gentlemen, thank you for standing by and welcome to the NIU Technologies First Quarter 2025 Earnings Conference Call. (Operator Instructions) Now, I will return the call over to Ms. Kristal Lee, Investor Relations Manager of NIU Technologies. Ms. Lee, please go ahead. Kristal Li Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss NIU Technologies with us for the first quarter 2025. The earnings press release, corporate presentation and financial spreadsheets have been posted on our investor relations website. This call is seeing webcast from our company's IR's as well, and a replay of the call will be available note, today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Security Litigation Reform Act of 1995. Forward-looking statements involves risks, uncertainties, assumptions, and other factors. The company's actual result may be materially different from those expressed information regarding the risk factors is included in the company's public filings with the Security and exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required by earnings press release and this call included a discussion of certain non-GAAP financial measures. The press release contained a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO Dr. Yan Li; and CFO Ms. Fion Zhou. Now let me turn the call over to CEO Yan. Yan Li Thank you, Kristal. Hello everyone, thank you for joining us today. In the first quarter of 2025, we achieved a total sales volume of 2,003,000 units, marking a significant 57.4% year over year growth. Behind its strong performance was a 66% year over year increase in the sales volume in the China market and a 6.4% year over year growth in the overseas revenue for the first quarter reached to RMB682 million reflecting a 35% increase compared with the same period last year. The gross margin rebounded to 17.3% with 4.9% year over year increase, primarily driven by the pump cost reduction in product platformization, component standardization and procurement cost performance in Cuba in 2025 has set a tone for the rest of the year underlying our drive for high volume and revenue growth, as well as the possibility improvement. Taking a closer look at our performance in China, sales volume reached to 183,000 units in this product portfolio strategy emphasized on NIU Technology, innovation and expanding sales channels as well as targeting marketing strategy for the key drivers to the strong domestic performance. In Q1 2025, we maintain our focus in our key product strategy of NMU and enhance our existing products through upgrading and refining our product portfolio, which led to optimize product mix and offer our customers an even more enjoyable writing experience. Additionally, we step up our motorcycle offerings, introduce model like MX, ML, and FX. The expansion divers by our electric motorcycle range and helps to broaden our sales was successfully launch a comprehensive range of electric motorcycles, including the MX, ML and SX series spanning price range from RMB4,000 plus to over RMB10,000. Each model features significant enhancement in functionality and smart technologies aligning with our new performance and safety additions have significantly expand our electric motorcycle portfolio, offering consumers a more diverse options for reinforce our position as premium brand in the electric two-wheeler delve into detail of each product, on March 21, we first launched the NX Pro motorcycle price the RMB 9,999, position as the speed champion among the sub 10,000 RMB electric motorcycles. It's equipped with 72 volts, 42-amp hour high energy lithium battery, offering a range of over 90 kilometres on one by a motor with a peak power of six kilowatts and a boost mode. It hits the top speed of 80 kilometres per hour and accelerates from 0 to 50 in just five point four seconds. The power in intelligent fast charging system allows for full charging in only five NX Pro received around 2000 preorders and set the sales record on a platform like Douyin and T-all on its launch date. This model has established itself as a pioneer in the high-end two-wheeler motorcycle market, reinforced new reputation for high performance and attracting a younger demographic that values speed and significantly boost our presence in the premium electric motorcycle sickness. We also launched our entry level and the smart electric motorcycles. The upgrade included enlarged footboard, extended seats and expanded storage comes equipped with advanced intelligent features such as full color display, TFT display with the measuring navigation, as well as okay go and go by a 2000 watt power motor, that the top speed of 55 kilometres per hour and includes the TCS as a standard features. Price the RMB4,799 that offers a compelling combination of performance, smart technology, and affordability. We also expand our S series with the FX Pro, FX Sports, and FXCD completing the S series product lineup on their full aggressive design, those models now come with enhanced features such as full color TFT display, expanded battery compartments, offering options of 72 volts, 42 a power lithium batteries or 72 volts, 35 a power the asset models delivered 45% increase in the top speed and a 75%, 72% boost in the peak in power. The S series also featured dual channel ABS and the magic wheel, which significantly enhance playability and ease of the operation, establishing F series as a performance powerhouse. We launched that series on May 13, platform such as T-a, JD and Doe, and this series is set starting besides the electric motorcycles, we have also integrated those technologies into our electric bicycle line elevating the categories with innovation technologies. We start with the popular signature electric bicycle models such as an XT, and LT, MT and MMT, those approach bring a premium electric motorcycle experience to the electric bicycle NXT launch on the March 21, stands out as the first electric bicycle equipped with dual channel ABS, a 12-inch full disc motor, and a standard boost launch mode. The NXT similarly incorporated the top tier electric motorcycle features. Those advancement has made a high favour choice among the consumers, setting a new benchmark in the electric bicycle we also unveiled two new models and the M series targeting the female users, the MT and MMT. The MT stands up for ultra compact design, a vibrant color options and user-friendly features like GoPO systems, making it especially suitable for female users seeking a convenience and style. The MMT is smaller model, embraced the iconic M series design with fresh colorful aesthetics and a comfortable writing experience tailored to a diverse preference of Gen Z female users as targeting those demographics, the M series accounted for an impressive 32% sales in Q1, reinforcing its appeal and market in Q1, our strategic emphasize on standardizing those key product platforms has shown a sign of progress they enhance our R&D process and also reduce our bond cost, contributing a significant improvement of our gross margin in the China market. The positive impact was evident in Q1, the product, we also roll out a series of features in smart technologies, such as a full function by inch TFT display, the magic will, all those focusing on similar driving experience, AI smart control assistance and AI smart ecosystem features. Also, in terms of driving 50, we have a partner with Goo Maps to develop the industry pioneer data-driven dynamic safety warning system facilitate an advanced functionalities include one spot warning, a rear vehicle approach warning that AI pilot the traffic light has already been implemented in our new NX, NXT models with a more advanced feature to be released in Q2 and Q3 this year. We're aiming at a significantly enhanced riding safety and uplifting or riding experience for our in last quarter, we also continue to enhance our brand influence our products among the target consumer groups, especially the premium consumers and Gen Z riders. On March 21, the launch of our NX Pro was marked by strategic partnership with the renowned Game for Peace, this collaboration introduced a new cup racing tournament within a game which quickly topped the trending list on platforms like Weiboodou in advertising campaign spend over 10,115,000 placements across 160 major cities, targeting prominent landmarks, key business districts in the subway systems, and offices elevators garnering over 2.4 billion views. Also on May 13, we our electric motorcycle matrix products targeting the premium users and Gen Z users. With the NX and also the FX launch become a milestone in 2025 with stocking sales of over RMB100 million sales in just first, five hours and the volume of 10,000 units in terms of channel expansion, we continue our previous strategy with strong focus on penetrating the previous underrepresented market in China, strategically expanding our retail footprint to ensure our product reaching a broader consumer base. We have expanded our retail footprint by opening about 384 new stores in Q1 with significant focus on tier 3 and tier 4 cities, accounting for 50% of the new opening strategic expansion rein distribution network and also paved the way for upcoming launch of electric motorcycle product in additionally, our online presence has been strengthened with sales improvement across multiple online channels such as our official brand accounts, the localized accounts, regional localized account, also the 400+ store strategy has hosted about 10,000 live broadcasts, generating 430 million views, marking a 6 ex increase compared with Q1, 2024 last year. This has significantly boosted our online visibility and customer interactions, contributing about 100,000 units of sales, representing 60% of our total sales let me turn to the overseas market. In the overseas marketing Q1, 2025, the sales volume reached to 20,000 units. Within the overseas market, we focused on electric two-wheeler market, which is the electric mopeds and electric electric two-wheeler market achieved over 3% increase due to the readiness we put in place on the direct distribution operation in the key countries such as Germany, Italy, and France, and those direct operations contributed more than 50% of sales in with the logistics financing CRM system, also the underground team we have really built the operation in those key countries and accelerated in network expansion. The end of Q1, 2025, the number of dealers in those direct distributed regions have increased from 120 to 180 dealers with projection to reach about 250 dealers by mid-2025, exceeding our initial have also introduced the full line of electric two-wheeler products from 50 cc equivalent LYE models to 125 cc equivalent L3E models, as well as the motorcycles. Those product price between EUR2000 to EUR4600 catering to a diverse consumer the first batch of new product was shipped in 12,025 and now it's been stocked in local warehouse ready for the peak season sales in Q2. Now with those full lineup of electric to their products to electric motorcycles, most opt motorcycles, and also the direct distribution operation in place. We anticipate exponential sales growth targeting 3x to 5x increase in 2025 with Q1 as the early indicator of such the fast growth in the electric two-wheeler sectors with the direct distribution regional anticipate accounting for 60% to 80% of sales will contribute significantly our profit profitability turnaround in the international for the micro mobility market for the international markets such as the kick scooters and the for the e-bikes, Q1, 2025 is the underperforming quarter with nearly flat volume growth and delayed profitability turnaround due to the tariff situation in the US and also the inventory clear out in Europe. In Europe, our Q1 focus on sales out of all the inventories, he has the impact of gross margin and all the inventory impacts will continue partially into Q2, but we expect to be minimized by the second half of this year. Now in the US, the uncertainty around the tariff situation we deliberately hold back the sales of existing inventories in the US marketing Q1 for more have implemented the price increase in online channels in Q1 and negotiate offline channels for price increases to be factored in late Q2 and early for the supplies to the US market, our manufacturing in Southeast Asia have already dispatched our first delivers in late Q1 2025, taking advantage of the 10% tariff window. The ship product has not been reflected in the sales we are carefully watching the tariff situation. However, with the negotiated price increases and the inventories prior to the tariff hike, we expect to regain profitability for the second half in 2025 for the US micro mobility overall remain optimistic about the China market in Q2 2025, building on strong foundation in product development and also the brand momentum. This has already produced the positive initial results in Q1. On the product side, we will continue to focus on product portfolio on our core NMU and F series. The launch of the newly operated in the F series in Q2 is expected to elevate our attractiveness and recognition within the high premium consumers and the Gen Z the launch of motorcycle products has diversified our product portfolio, offering consumers a wide array of options. Also, we have moved up the launch of a new product in Q2 to May 13, right before the China top sales season of June 18, to take advantage of we'll continue to expand our sales channels, expanding, expecting to add another 300 to 400 stores in Q2. The channel expansion will drive sales growth, but also shows a sign of channel momentum turn around this lastly, we will continue to improve our gross margin as a result ratiovia product platformization in finally, we have worked diligently to modify our current product line up, to create a new design style to cook with the new electric bicycle standard in China to be in place in September. We have a solid product line up development ready to be in the market by looking at the international market, with the trend we observe in Q1 and Q2, we anticipate a steady growth in the overseas market and turn around profit loss this year. In the electric cooler market with a complete product portfolio and the established direct distribution operations, we anticipate a hyper growth in both revenue and profit sales growth we saw in Q1 is a testament to this foundation we have built. In the following quarters, our focus will be on expanding the direct distribution operations at a higher contribution the micro mobility market, even with the turmoil on the tariffs, we have started to return around signs from profitability perspective. With the clearing out of our inventory in Europe and also the clarity with the US tariff situation, we expect to rebound with the moderate growth and a significant improvement in the I'll turn over to our CFO Fion Zhou to talk about financial. Fion Zhou Thank you, and hello please note that our press release contains all the figures and comparisons you need, and we have also uploaded the Excel format figures to our IR website for your reference. As I review our financial results, I'm referring to the first quarter figures unless I say otherwise, and all monetary figures are non-not specified. At the end just mentioned, our total sales volume for the first quarter was 203,000 units, up 57% compared to the same period of last year. 183,000 units were sold in China, while the remaining RMB20,000 were sold total revenue for the first quarter amounted to RMB682 million, an increase of RMB177 million or 35% compared to the same period of last year. The China revenues were RMB608 million, accounting for 89% of the total revenues. Of this, the scooter revenue was RMB546 million a year increase of 39%. This increase was mainly due to the increase in sales volume and partially offset by a decrease in revenue per scooter ASP was found to nearly RV 3,000. This decline in ASP was primarily attributed to a shift in product mix. The notable increase in sales volume of high-end la asset models as mentioned in the previous quarters last year, has led to a more concentrated retail price range from RMB3,000 to RMB7, the overseas revenue was RMB74 million, representing 11% of the total revenue. The scooter revenues, including electric motorcycles, mopeds, kick scooters, and e-bikes, amounted to RMB60 million, up from RMB49 million in the same period of last year. And this growth was driven by stronger international demand. For electric motorcycles and mopeds, which command higher retail price and the premium pricing of these products also contributed to a year over year increase in the overseas AP rising from RMB22,577 to RMB2, the revenue from accessories spare parts and services amounted to RMB76 million a 20% increase compared to the same period of last year due to the increase in the spare parts sales in both China and overseas gross profit for the first quarter exceeded RMB118 million, marking a significant improvement compared to RMB96 million during the same period of last year, and the gross margin was 17.3%, 1.6 PPT lower than the same period of last year, but 4.9 PPT higher than the previous domestic market growth margin improved due to the successful cost reduction initiatives, which increased the overall GM by 1.2 the overseas cooler margins dragged down the total growth margin by 2.8 PPT, primarily due to the three factors. The impact of 25% of the US tariffs implemented last freight cost and aged inventory write operating expenses for the first quarter were RMB165 million remaining flat compared to the same period of last year. However, the OPEC ratio declined significantly from 32.7% to 24.2%. Selling and marketing expenses rose by RMB9 million year over year to RMB150million and RMB150 million driven by a higher staff cost, advertising and promotional activities and rental expenses. Selling and marketing for 16.8% of revenue, down from 20.9% in the first quarter of 2024. R&D expenses increased by RMB1 million year over year to RMB30 million, primarily due to the higher staff cost and share risk compensation. The R&D expenses as percentage of revenue are 4.4% compared to 5.7% in the first quarter of 2024. GNA expenses. By RMB10 million year over year to RMB21 million largely attributed to the foreign currency exchange gains and GNA expenses as percentage of revenue was 3%, a notable reduction from 6.1% compared to last fourth quarter in the first quarter we had a net loss of RMB39 million with the net loss margin of 5.7% on the non-GAAP accounting compared a net loss of RMB55 million with the net loss margin of 10.9% for the same period last adjusted net loss was RMB31 million with an adjusted net loss margin of 4.6% and turning to our balance sheet and cash flow, we ended the quarter with RMB963 million versus RMB1.1 billion last year. In cash, restive cash, term deposit, and short-term investments, and our operating cash outflow amounted to RMB154 caps for the first quarter amounted to RMB24 million, reflecting an increase of RMB3 million compared to the same period of last year, and this can be attributed primarily to an increase in the opening of new stores in let's turn to guidance. We expected the second quarter revenue to be in the range of RMB1.3 billion to RMB1.4 billion an increase of 40% to 50% year over be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectation which is subject to change due to the uncertainties relating to our various factors and with that we're now open the call for any questions that you may have for us, operator, please go ahead. Operator (Operator Instructions) Kyle Wu, Citi Research. Kyle Wu Thank you, operator. Hi, this is Kyle from Citi. Thanks for taking my questions. I have two questions. First is about the sales volume guidance. At the year beginning, we guide, 2025 full year sales volume to be 30% to 50% year on year growth. Do we still maintain this volume guidance? Second is about the margin. What's our margin outlook for the upcoming quarters of this year? And also, do we still expect second quarter to see net profit turnaround, thank you. Yan Li Yeah, let me address the first one. In terms of guidance for the annual volume we haven't reached, we have not changed the guidance. I think we're on the path. Fion Zhou Okay, for the growth margin annually, actually last year, our overall growth margin was only 15.2% overall, and for sure this year the annual growth margin will be recovered from 15%. And for the quarter this year, we still expecting that the, we will get the profit from the next margin, so the MP is the positive expectation for us. Kyle Wu Okay, thank you. Fion Zhou Hope you got answer for this question. Operator (Operator Instructions) Jing Chang, CICC. Please go ahead, your line is Jing Chang Hello, I have one question. I have seen that the average selling price decreased the quarter to quarter in Q1, but the gross profit margin improved significantly quarter to quarter. So I'd like to know what the main reason is and what is the outlook for average selling price in subsequent quarters. This is my question, thank you. Fion Zhou Okay. I'll take this question. Actually, in this quarter, the ESP, especially the China ASP dropped due to, we launched the new models, from starting from last year, the launch date of our new models, especially the flagship models vary each year. For instance, the retail price of MP 2025 is this quarter's best seller. The price ranges from RMB, nearly RMB4,000 to RMB5,000, whereas last year we launched the NXT last Q1. This is, our last year's top seller and the price between the RMB6,000 to around RMB12, the launching date of our new model. Actually, various our ASP each quarter, but this ASP will smooth if we're looking forward to the next, to the following quarters, especially the NASP as we just explained to the market that, the ESP will remain almost the same compared to last year or, change a little bit single digital change, for the, second quarter after this year actually we expected the ASP, especially in the domestic market will recover, compared to the Q1 this year, but we will, we concentrated actually the models retail price. Well concentrated in the range from RMB3,000 to RMB7,000. So, the ASP will, rebound from this quarters, RMB3,000 to around, RMB3,000 to RMB3,500 ASP in the domestic this is our expectation in the in the quarter two ASP and as to the gross margin recovered as I just explained that this quarters growth margin, recovered, especially from the, our domestic schoolers cost last Q4 we see a dramatic growth margin, drop down, due to our assets, motorcycles and moped in the domestic market contributed, more than 40% of our sales volume which are which are 3% to 5% gross margin lower than the same here in the recent one and we began to we began to change the smart function platform and also, the R&D, the R&D platform and also the cost reduction from the raw material and this quarter we saw the benefits from the cost reduction in the domestic market and in think the world's margin will, remain at this level, but you will change, a little bit, due to the product mixed in the domestic market, but will not go back to, lower than 15% as last year showing the figures. This is the this is the gross marking and the ESP for this year's explanation. Jing Chang Thank you very much. That's all my questions. Operator Michael Simmons, Global View SA. Michael Simmons Thank you. Yes, it's Michael here, Michael Simmons. Dr. Lee, perhaps I can just ask you a little bit about the balance sheet. I think it's the cash position has kind of come down a little bit, given what you've just been talking about and it sounds like the second quarter is looking quite good. How do you think the cash position, the net cash position is going to look at the end of the year? Fion Zhou Well, actually, each year the quarter one is the cash position is the lowest since it's the Chinese New Year, we need to clear out all the advance to the suppliers, the accounts payable, and also the notes payable to the bank. So if you're looking back to 2024 and 2023 each year, the fourth quarter's cash balance is the lowest, during the whole at the end of this year 2025 actually we expected the cash position will grow up starting from quarter to, since the peak season, both in the domestic market and the overseas market is coming and we give a high speed sales volume increase aligned with the revenue increase and this will brought us. The operating cash flow inflow starting from quarter to and we didn't expect a large pay for the for the furniture and equipment and also the doors open. So overall we think the cash position at the end of this year will be, higher than, the end of December 31, in 2024. Michael Simmons Great, thank you. Operator Mr President, we will take our next question. Zyan Wayan, South Capital. Okay. This is Daniel from CIA Capital, and I have only one question regarding overseas business. Why is good, as we, know that, why good revenue, has been negatively impacted by tariffs. Electric motorcycle sales have shown growth. How should we interpret the growth rate target for overseas operations under this these circumstances, thank you. Yan Li I think for the overseas growth rate, we remain; to be, we haven't really changed through our forecast. For this year, I think even at the last quarter when we, we talked about the last year results and even the forecast of this year, we know that our electric tool or the electric motorcycle market, the growth rate will be quite high because they start with actually, last year we only did about 3,000+ units of electric motorcycles and then during our peak time. We actually did it, close to, weigh about 20,000 we look at, the, that, the starting from 3,000 units last year, we look at a really a hyper growth this year, looking at somewhere at least 5X to 6X growth on the electric motorcycle side. On the, the which, on the quarter one where you see a 3X growth the micro mobility, the kick scooters, so we, the US tariff really started to impact us last year when, our tariffs actually increased to 25%, on May 30, post May 31, last year. So that already has an impact on the business. So we actually start to Relocating the manufacturing base from China to Southeast Asia, to try to cope with that 25% tariff where back then the Southeast Asia, it was a 0% I mean this quarter, Q1 this year, we see, the basically the tariff goes in the Southeast Asia tariff up to 10%, but the China side actually went up significantly. So we actually consciously made adjustment saying by holding off the sales for the US market. But you look at the entire year, I think the demand there with our Southeast Asia manufacturing base in place, also with how we negotiate the price increase. With a key US retailers like Best Buy, Walmart, I think we should be able to see that business goes as normal as what we expected at the beginning of the overall, I think with the micro mobility, both on the US, Europe, I think our key three footprint are US mark, well, the entire North American market, basically US and Canada, and also the European market, as well as some of the Australian market, New Zealand market. We expect moderate growth. We don't expect that business grow at 2X or something. We really expect.A simple double-digit growth, and with the key goal is actually a, I turn around the profitability. I think if you look at the two international market segments with the electric motorcycle, I think it's a hyper growth with the high profitability contribution and on the kick scooter or micro mobility market, you really should expect this moderate growth, but with the key focus on turning around from a profit loss to a profitability business unit. Okay, thank you. Operator There seems to be no further questions. I would like to hand back for closing remarks. Yan Li Alright, thank you, operator, and thank you all for participating on today's call and for your support. We appreciate your interest and looking forward to reporting to you again next quarter on our program, thank you. Operator This concludes today's conference call. Thank you for participating. You may now disconnect. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Q1 2025 NIU Technologies Earnings Call
Kristal Li; Investor Relations Manager; NIU Technologies Yan Li; Chairman of the Board, Chief Executive Officer; NIU Technologies Fion Zhou; Chief Financial Officer; NIU Technologies Kyle Wu; Analyst; Citi Research Jing Chang; Analyst; CICC Michael Simmons; Analyst; Global View SA. Operator Good day ladies and gentlemen, thank you for standing by and welcome to the NIU Technologies First Quarter 2025 Earnings Conference Call. (Operator Instructions) Now, I will return the call over to Ms. Kristal Lee, Investor Relations Manager of NIU Technologies. Ms. Lee, please go ahead. Kristal Li Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss NIU Technologies with us for the first quarter 2025. The earnings press release, corporate presentation and financial spreadsheets have been posted on our investor relations website. This call is seeing webcast from our company's IR's as well, and a replay of the call will be available note, today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Security Litigation Reform Act of 1995. Forward-looking statements involves risks, uncertainties, assumptions, and other factors. The company's actual result may be materially different from those expressed information regarding the risk factors is included in the company's public filings with the Security and exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required by earnings press release and this call included a discussion of certain non-GAAP financial measures. The press release contained a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO Dr. Yan Li; and CFO Ms. Fion Zhou. Now let me turn the call over to CEO Yan. Yan Li Thank you, Kristal. Hello everyone, thank you for joining us today. In the first quarter of 2025, we achieved a total sales volume of 2,003,000 units, marking a significant 57.4% year over year growth. Behind its strong performance was a 66% year over year increase in the sales volume in the China market and a 6.4% year over year growth in the overseas revenue for the first quarter reached to RMB682 million reflecting a 35% increase compared with the same period last year. The gross margin rebounded to 17.3% with 4.9% year over year increase, primarily driven by the pump cost reduction in product platformization, component standardization and procurement cost performance in Cuba in 2025 has set a tone for the rest of the year underlying our drive for high volume and revenue growth, as well as the possibility improvement. Taking a closer look at our performance in China, sales volume reached to 183,000 units in this product portfolio strategy emphasized on NIU Technology, innovation and expanding sales channels as well as targeting marketing strategy for the key drivers to the strong domestic performance. In Q1 2025, we maintain our focus in our key product strategy of NMU and enhance our existing products through upgrading and refining our product portfolio, which led to optimize product mix and offer our customers an even more enjoyable writing experience. Additionally, we step up our motorcycle offerings, introduce model like MX, ML, and FX. The expansion divers by our electric motorcycle range and helps to broaden our sales was successfully launch a comprehensive range of electric motorcycles, including the MX, ML and SX series spanning price range from RMB4,000 plus to over RMB10,000. Each model features significant enhancement in functionality and smart technologies aligning with our new performance and safety additions have significantly expand our electric motorcycle portfolio, offering consumers a more diverse options for reinforce our position as premium brand in the electric two-wheeler delve into detail of each product, on March 21, we first launched the NX Pro motorcycle price the RMB 9,999, position as the speed champion among the sub 10,000 RMB electric motorcycles. It's equipped with 72 volts, 42-amp hour high energy lithium battery, offering a range of over 90 kilometres on one by a motor with a peak power of six kilowatts and a boost mode. It hits the top speed of 80 kilometres per hour and accelerates from 0 to 50 in just five point four seconds. The power in intelligent fast charging system allows for full charging in only five NX Pro received around 2000 preorders and set the sales record on a platform like Douyin and T-all on its launch date. This model has established itself as a pioneer in the high-end two-wheeler motorcycle market, reinforced new reputation for high performance and attracting a younger demographic that values speed and significantly boost our presence in the premium electric motorcycle sickness. We also launched our entry level and the smart electric motorcycles. The upgrade included enlarged footboard, extended seats and expanded storage comes equipped with advanced intelligent features such as full color display, TFT display with the measuring navigation, as well as okay go and go by a 2000 watt power motor, that the top speed of 55 kilometres per hour and includes the TCS as a standard features. Price the RMB4,799 that offers a compelling combination of performance, smart technology, and affordability. We also expand our S series with the FX Pro, FX Sports, and FXCD completing the S series product lineup on their full aggressive design, those models now come with enhanced features such as full color TFT display, expanded battery compartments, offering options of 72 volts, 42 a power lithium batteries or 72 volts, 35 a power the asset models delivered 45% increase in the top speed and a 75%, 72% boost in the peak in power. The S series also featured dual channel ABS and the magic wheel, which significantly enhance playability and ease of the operation, establishing F series as a performance powerhouse. We launched that series on May 13, platform such as T-a, JD and Doe, and this series is set starting besides the electric motorcycles, we have also integrated those technologies into our electric bicycle line elevating the categories with innovation technologies. We start with the popular signature electric bicycle models such as an XT, and LT, MT and MMT, those approach bring a premium electric motorcycle experience to the electric bicycle NXT launch on the March 21, stands out as the first electric bicycle equipped with dual channel ABS, a 12-inch full disc motor, and a standard boost launch mode. The NXT similarly incorporated the top tier electric motorcycle features. Those advancement has made a high favour choice among the consumers, setting a new benchmark in the electric bicycle we also unveiled two new models and the M series targeting the female users, the MT and MMT. The MT stands up for ultra compact design, a vibrant color options and user-friendly features like GoPO systems, making it especially suitable for female users seeking a convenience and style. The MMT is smaller model, embraced the iconic M series design with fresh colorful aesthetics and a comfortable writing experience tailored to a diverse preference of Gen Z female users as targeting those demographics, the M series accounted for an impressive 32% sales in Q1, reinforcing its appeal and market in Q1, our strategic emphasize on standardizing those key product platforms has shown a sign of progress they enhance our R&D process and also reduce our bond cost, contributing a significant improvement of our gross margin in the China market. The positive impact was evident in Q1, the product, we also roll out a series of features in smart technologies, such as a full function by inch TFT display, the magic will, all those focusing on similar driving experience, AI smart control assistance and AI smart ecosystem features. Also, in terms of driving 50, we have a partner with Goo Maps to develop the industry pioneer data-driven dynamic safety warning system facilitate an advanced functionalities include one spot warning, a rear vehicle approach warning that AI pilot the traffic light has already been implemented in our new NX, NXT models with a more advanced feature to be released in Q2 and Q3 this year. We're aiming at a significantly enhanced riding safety and uplifting or riding experience for our in last quarter, we also continue to enhance our brand influence our products among the target consumer groups, especially the premium consumers and Gen Z riders. On March 21, the launch of our NX Pro was marked by strategic partnership with the renowned Game for Peace, this collaboration introduced a new cup racing tournament within a game which quickly topped the trending list on platforms like Weiboodou in advertising campaign spend over 10,115,000 placements across 160 major cities, targeting prominent landmarks, key business districts in the subway systems, and offices elevators garnering over 2.4 billion views. Also on May 13, we our electric motorcycle matrix products targeting the premium users and Gen Z users. With the NX and also the FX launch become a milestone in 2025 with stocking sales of over RMB100 million sales in just first, five hours and the volume of 10,000 units in terms of channel expansion, we continue our previous strategy with strong focus on penetrating the previous underrepresented market in China, strategically expanding our retail footprint to ensure our product reaching a broader consumer base. We have expanded our retail footprint by opening about 384 new stores in Q1 with significant focus on tier 3 and tier 4 cities, accounting for 50% of the new opening strategic expansion rein distribution network and also paved the way for upcoming launch of electric motorcycle product in additionally, our online presence has been strengthened with sales improvement across multiple online channels such as our official brand accounts, the localized accounts, regional localized account, also the 400+ store strategy has hosted about 10,000 live broadcasts, generating 430 million views, marking a 6 ex increase compared with Q1, 2024 last year. This has significantly boosted our online visibility and customer interactions, contributing about 100,000 units of sales, representing 60% of our total sales let me turn to the overseas market. In the overseas marketing Q1, 2025, the sales volume reached to 20,000 units. Within the overseas market, we focused on electric two-wheeler market, which is the electric mopeds and electric electric two-wheeler market achieved over 3% increase due to the readiness we put in place on the direct distribution operation in the key countries such as Germany, Italy, and France, and those direct operations contributed more than 50% of sales in with the logistics financing CRM system, also the underground team we have really built the operation in those key countries and accelerated in network expansion. The end of Q1, 2025, the number of dealers in those direct distributed regions have increased from 120 to 180 dealers with projection to reach about 250 dealers by mid-2025, exceeding our initial have also introduced the full line of electric two-wheeler products from 50 cc equivalent LYE models to 125 cc equivalent L3E models, as well as the motorcycles. Those product price between EUR2000 to EUR4600 catering to a diverse consumer the first batch of new product was shipped in 12,025 and now it's been stocked in local warehouse ready for the peak season sales in Q2. Now with those full lineup of electric to their products to electric motorcycles, most opt motorcycles, and also the direct distribution operation in place. We anticipate exponential sales growth targeting 3x to 5x increase in 2025 with Q1 as the early indicator of such the fast growth in the electric two-wheeler sectors with the direct distribution regional anticipate accounting for 60% to 80% of sales will contribute significantly our profit profitability turnaround in the international for the micro mobility market for the international markets such as the kick scooters and the for the e-bikes, Q1, 2025 is the underperforming quarter with nearly flat volume growth and delayed profitability turnaround due to the tariff situation in the US and also the inventory clear out in Europe. In Europe, our Q1 focus on sales out of all the inventories, he has the impact of gross margin and all the inventory impacts will continue partially into Q2, but we expect to be minimized by the second half of this year. Now in the US, the uncertainty around the tariff situation we deliberately hold back the sales of existing inventories in the US marketing Q1 for more have implemented the price increase in online channels in Q1 and negotiate offline channels for price increases to be factored in late Q2 and early for the supplies to the US market, our manufacturing in Southeast Asia have already dispatched our first delivers in late Q1 2025, taking advantage of the 10% tariff window. The ship product has not been reflected in the sales we are carefully watching the tariff situation. However, with the negotiated price increases and the inventories prior to the tariff hike, we expect to regain profitability for the second half in 2025 for the US micro mobility overall remain optimistic about the China market in Q2 2025, building on strong foundation in product development and also the brand momentum. This has already produced the positive initial results in Q1. On the product side, we will continue to focus on product portfolio on our core NMU and F series. The launch of the newly operated in the F series in Q2 is expected to elevate our attractiveness and recognition within the high premium consumers and the Gen Z the launch of motorcycle products has diversified our product portfolio, offering consumers a wide array of options. Also, we have moved up the launch of a new product in Q2 to May 13, right before the China top sales season of June 18, to take advantage of we'll continue to expand our sales channels, expanding, expecting to add another 300 to 400 stores in Q2. The channel expansion will drive sales growth, but also shows a sign of channel momentum turn around this lastly, we will continue to improve our gross margin as a result ratiovia product platformization in finally, we have worked diligently to modify our current product line up, to create a new design style to cook with the new electric bicycle standard in China to be in place in September. We have a solid product line up development ready to be in the market by looking at the international market, with the trend we observe in Q1 and Q2, we anticipate a steady growth in the overseas market and turn around profit loss this year. In the electric cooler market with a complete product portfolio and the established direct distribution operations, we anticipate a hyper growth in both revenue and profit sales growth we saw in Q1 is a testament to this foundation we have built. In the following quarters, our focus will be on expanding the direct distribution operations at a higher contribution the micro mobility market, even with the turmoil on the tariffs, we have started to return around signs from profitability perspective. With the clearing out of our inventory in Europe and also the clarity with the US tariff situation, we expect to rebound with the moderate growth and a significant improvement in the I'll turn over to our CFO Fion Zhou to talk about financial. Fion Zhou Thank you, and hello please note that our press release contains all the figures and comparisons you need, and we have also uploaded the Excel format figures to our IR website for your reference. As I review our financial results, I'm referring to the first quarter figures unless I say otherwise, and all monetary figures are non-not specified. At the end just mentioned, our total sales volume for the first quarter was 203,000 units, up 57% compared to the same period of last year. 183,000 units were sold in China, while the remaining RMB20,000 were sold total revenue for the first quarter amounted to RMB682 million, an increase of RMB177 million or 35% compared to the same period of last year. The China revenues were RMB608 million, accounting for 89% of the total revenues. Of this, the scooter revenue was RMB546 million a year increase of 39%. This increase was mainly due to the increase in sales volume and partially offset by a decrease in revenue per scooter ASP was found to nearly RV 3,000. This decline in ASP was primarily attributed to a shift in product mix. The notable increase in sales volume of high-end la asset models as mentioned in the previous quarters last year, has led to a more concentrated retail price range from RMB3,000 to RMB7, the overseas revenue was RMB74 million, representing 11% of the total revenue. The scooter revenues, including electric motorcycles, mopeds, kick scooters, and e-bikes, amounted to RMB60 million, up from RMB49 million in the same period of last year. And this growth was driven by stronger international demand. For electric motorcycles and mopeds, which command higher retail price and the premium pricing of these products also contributed to a year over year increase in the overseas AP rising from RMB22,577 to RMB2, the revenue from accessories spare parts and services amounted to RMB76 million a 20% increase compared to the same period of last year due to the increase in the spare parts sales in both China and overseas gross profit for the first quarter exceeded RMB118 million, marking a significant improvement compared to RMB96 million during the same period of last year, and the gross margin was 17.3%, 1.6 PPT lower than the same period of last year, but 4.9 PPT higher than the previous domestic market growth margin improved due to the successful cost reduction initiatives, which increased the overall GM by 1.2 the overseas cooler margins dragged down the total growth margin by 2.8 PPT, primarily due to the three factors. The impact of 25% of the US tariffs implemented last freight cost and aged inventory write operating expenses for the first quarter were RMB165 million remaining flat compared to the same period of last year. However, the OPEC ratio declined significantly from 32.7% to 24.2%. Selling and marketing expenses rose by RMB9 million year over year to RMB150million and RMB150 million driven by a higher staff cost, advertising and promotional activities and rental expenses. Selling and marketing for 16.8% of revenue, down from 20.9% in the first quarter of 2024. R&D expenses increased by RMB1 million year over year to RMB30 million, primarily due to the higher staff cost and share risk compensation. The R&D expenses as percentage of revenue are 4.4% compared to 5.7% in the first quarter of 2024. GNA expenses. By RMB10 million year over year to RMB21 million largely attributed to the foreign currency exchange gains and GNA expenses as percentage of revenue was 3%, a notable reduction from 6.1% compared to last fourth quarter in the first quarter we had a net loss of RMB39 million with the net loss margin of 5.7% on the non-GAAP accounting compared a net loss of RMB55 million with the net loss margin of 10.9% for the same period last adjusted net loss was RMB31 million with an adjusted net loss margin of 4.6% and turning to our balance sheet and cash flow, we ended the quarter with RMB963 million versus RMB1.1 billion last year. In cash, restive cash, term deposit, and short-term investments, and our operating cash outflow amounted to RMB154 caps for the first quarter amounted to RMB24 million, reflecting an increase of RMB3 million compared to the same period of last year, and this can be attributed primarily to an increase in the opening of new stores in let's turn to guidance. We expected the second quarter revenue to be in the range of RMB1.3 billion to RMB1.4 billion an increase of 40% to 50% year over be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectation which is subject to change due to the uncertainties relating to our various factors and with that we're now open the call for any questions that you may have for us, operator, please go ahead. Operator (Operator Instructions) Kyle Wu, Citi Research. Kyle Wu Thank you, operator. Hi, this is Kyle from Citi. Thanks for taking my questions. I have two questions. First is about the sales volume guidance. At the year beginning, we guide, 2025 full year sales volume to be 30% to 50% year on year growth. Do we still maintain this volume guidance? Second is about the margin. What's our margin outlook for the upcoming quarters of this year? And also, do we still expect second quarter to see net profit turnaround, thank you. Yan Li Yeah, let me address the first one. In terms of guidance for the annual volume we haven't reached, we have not changed the guidance. I think we're on the path. Fion Zhou Okay, for the growth margin annually, actually last year, our overall growth margin was only 15.2% overall, and for sure this year the annual growth margin will be recovered from 15%. And for the quarter this year, we still expecting that the, we will get the profit from the next margin, so the MP is the positive expectation for us. Kyle Wu Okay, thank you. Fion Zhou Hope you got answer for this question. Operator (Operator Instructions) Jing Chang, CICC. Please go ahead, your line is Jing Chang Hello, I have one question. I have seen that the average selling price decreased the quarter to quarter in Q1, but the gross profit margin improved significantly quarter to quarter. So I'd like to know what the main reason is and what is the outlook for average selling price in subsequent quarters. This is my question, thank you. Fion Zhou Okay. I'll take this question. Actually, in this quarter, the ESP, especially the China ASP dropped due to, we launched the new models, from starting from last year, the launch date of our new models, especially the flagship models vary each year. For instance, the retail price of MP 2025 is this quarter's best seller. The price ranges from RMB, nearly RMB4,000 to RMB5,000, whereas last year we launched the NXT last Q1. This is, our last year's top seller and the price between the RMB6,000 to around RMB12, the launching date of our new model. Actually, various our ASP each quarter, but this ASP will smooth if we're looking forward to the next, to the following quarters, especially the NASP as we just explained to the market that, the ESP will remain almost the same compared to last year or, change a little bit single digital change, for the, second quarter after this year actually we expected the ASP, especially in the domestic market will recover, compared to the Q1 this year, but we will, we concentrated actually the models retail price. Well concentrated in the range from RMB3,000 to RMB7,000. So, the ASP will, rebound from this quarters, RMB3,000 to around, RMB3,000 to RMB3,500 ASP in the domestic this is our expectation in the in the quarter two ASP and as to the gross margin recovered as I just explained that this quarters growth margin, recovered, especially from the, our domestic schoolers cost last Q4 we see a dramatic growth margin, drop down, due to our assets, motorcycles and moped in the domestic market contributed, more than 40% of our sales volume which are which are 3% to 5% gross margin lower than the same here in the recent one and we began to we began to change the smart function platform and also, the R&D, the R&D platform and also the cost reduction from the raw material and this quarter we saw the benefits from the cost reduction in the domestic market and in think the world's margin will, remain at this level, but you will change, a little bit, due to the product mixed in the domestic market, but will not go back to, lower than 15% as last year showing the figures. This is the this is the gross marking and the ESP for this year's explanation. Jing Chang Thank you very much. That's all my questions. Operator Michael Simmons, Global View SA. Michael Simmons Thank you. Yes, it's Michael here, Michael Simmons. Dr. Lee, perhaps I can just ask you a little bit about the balance sheet. I think it's the cash position has kind of come down a little bit, given what you've just been talking about and it sounds like the second quarter is looking quite good. How do you think the cash position, the net cash position is going to look at the end of the year? Fion Zhou Well, actually, each year the quarter one is the cash position is the lowest since it's the Chinese New Year, we need to clear out all the advance to the suppliers, the accounts payable, and also the notes payable to the bank. So if you're looking back to 2024 and 2023 each year, the fourth quarter's cash balance is the lowest, during the whole at the end of this year 2025 actually we expected the cash position will grow up starting from quarter to, since the peak season, both in the domestic market and the overseas market is coming and we give a high speed sales volume increase aligned with the revenue increase and this will brought us. The operating cash flow inflow starting from quarter to and we didn't expect a large pay for the for the furniture and equipment and also the doors open. So overall we think the cash position at the end of this year will be, higher than, the end of December 31, in 2024. Michael Simmons Great, thank you. Operator Mr President, we will take our next question. Zyan Wayan, South Capital. Okay. This is Daniel from CIA Capital, and I have only one question regarding overseas business. Why is good, as we, know that, why good revenue, has been negatively impacted by tariffs. Electric motorcycle sales have shown growth. How should we interpret the growth rate target for overseas operations under this these circumstances, thank you. Yan Li I think for the overseas growth rate, we remain; to be, we haven't really changed through our forecast. For this year, I think even at the last quarter when we, we talked about the last year results and even the forecast of this year, we know that our electric tool or the electric motorcycle market, the growth rate will be quite high because they start with actually, last year we only did about 3,000+ units of electric motorcycles and then during our peak time. We actually did it, close to, weigh about 20,000 we look at, the, that, the starting from 3,000 units last year, we look at a really a hyper growth this year, looking at somewhere at least 5X to 6X growth on the electric motorcycle side. On the, the which, on the quarter one where you see a 3X growth the micro mobility, the kick scooters, so we, the US tariff really started to impact us last year when, our tariffs actually increased to 25%, on May 30, post May 31, last year. So that already has an impact on the business. So we actually start to Relocating the manufacturing base from China to Southeast Asia, to try to cope with that 25% tariff where back then the Southeast Asia, it was a 0% I mean this quarter, Q1 this year, we see, the basically the tariff goes in the Southeast Asia tariff up to 10%, but the China side actually went up significantly. So we actually consciously made adjustment saying by holding off the sales for the US market. But you look at the entire year, I think the demand there with our Southeast Asia manufacturing base in place, also with how we negotiate the price increase. With a key US retailers like Best Buy, Walmart, I think we should be able to see that business goes as normal as what we expected at the beginning of the overall, I think with the micro mobility, both on the US, Europe, I think our key three footprint are US mark, well, the entire North American market, basically US and Canada, and also the European market, as well as some of the Australian market, New Zealand market. We expect moderate growth. We don't expect that business grow at 2X or something. We really expect.A simple double-digit growth, and with the key goal is actually a, I turn around the profitability. I think if you look at the two international market segments with the electric motorcycle, I think it's a hyper growth with the high profitability contribution and on the kick scooter or micro mobility market, you really should expect this moderate growth, but with the key focus on turning around from a profit loss to a profitability business unit. Okay, thank you. Operator There seems to be no further questions. I would like to hand back for closing remarks. Yan Li Alright, thank you, operator, and thank you all for participating on today's call and for your support. We appreciate your interest and looking forward to reporting to you again next quarter on our program, thank you. Operator This concludes today's conference call. Thank you for participating. You may now disconnect.
Yahoo
18-03-2025
- Business
- Yahoo
Q4 2024 NIU Technologies Earnings Call
Kristal Li; Investor Relations Manager; NIU Technologies Yan Li; Chairman of the Board, Chief Executive Officer; NIU Technologies Zhou Wenjuan; Chief Financial Officer, Director; NIU Technologies Yating Chen; Analyst; CICC Alan Lee; Analyst; Guotai Junan Securities Operator Ladies and gentlemen, thank you for standing by. Welcome to Niu Technologies fourth-quarter 2024 earnings release conference call. (Operator Instructions) Please be advised that today's conference is being recorded. If you have any objections, you may disconnect at this time.I would like now to turn the conference over to Kristal Li, Investor Relations Manager of Niu Technologies Ms. Li, please go ahead. Kristal Li Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the fourth quarter and full year 2024. The earnings press release, corporate presentation, and financial spreadsheet has been posted on our Investor Relations website. This call is being webcast from our company's IR site as well, and a replay of the call will be available note, today's discussion will contain forward-looking statements made under the safe harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions, and other company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required by earnings press release and this call include discussions of certain non-GAAP financial measures and press release contain a definition of non-GAAP financial measures and reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li; and CFO, Ms. Fion Zhou. Now let me turn the call over to CEO, Yan. Yan Li Thank you, Kristal. Hello, everyone. Thank you for joining us today. So in the fourth quarter of 2024, we achieved a total sales volume of 226,600 units, marking a significant 65% year-over-year growth. Behind this strong performance was 65% year-over-year increase in sales volume in China, reaching 182,000 units, and a 64% year-over-year growth in overseas, with 44,000 units revenue for the fourth quarter was RMB819 million, reflecting a 71% increase compared with same period last year. Those results closed out the financial year for 2024 on a strong note. For the full year, we recorded total sales volume of 924,000 units, representing a 30% year-over-year increase. Total revenue for the year reached RMB3.29 billion, up 24% from 2023. This refining growth underscores the effectiveness of our strategic 2024, we remain focused on expanding our product offerings, strengthening sales channels, and broaden our market reach. Our return on growth trajectory is a testament on all those efforts. As we build on this momentum, we remain committed to refine our strategy to achieve ambitious target and adapt to evolving market taking a closer look at our performance in China, sales volume reached 182,000 units in this quarter. Our focused product portfolio emphasized our technology innovation, expanded sales channel, and the targeted market initiatives were key drivers for the strong domestic the entire year of 2024, we remain laser-focused in refining our signature product lineup, emphasizing our core N, M and U series, while also introduced the new F-Series as a key addition. We expanded our best seller strategy, further strengthening our leadership in the mid- to high-end segments with a robust and competitive product innovation, we took an extra step to prioritize product safety by subjecting our models to rigorous testing standard. Niu became the first brand in the market to receive a 5-star safety certification from China Merchant Vehicle Research 2024, we continue to elevate our legacy of N-Series, reinforcing our status as Niu's most recognized and best-seller product line across multiple market segments. At the premium end, we introduced the NX and NXT Series, the most powerful and high-performance two-wheeler Niu has ever on the shared platform, the NX and NXT incorporate our most advanced smart riding technologies, include the two channel ABS, a full-color TFT display with screen mirroring navigation, millimeter wave radar, and adaptive traction control, setting new standards for performance and this line up, the NX Hyper stands as a flagship model engineered from racing enthusiasts, featuring a motor with a peak output of 29 kilowatts, a top speed of 135-kilometer per hour and the sale of our suspension braking system, delivering exceptional rider the top performance of NX, it's also built with riding safety in mind. The NX is the first electric motorcycle in China to earn a five-star safety the high-performance NX and NXT Series, we also expanded N-series lab earlier this year with the launch of N-play and NT-play to establish a compact model quickly gained popularity among young riders for their affordability and driving N-play electric motorcycle and NT-play electric bicycle retain the economic N-Series look while incorporating smart features such as keyless ignition, TCS traction control, and push assist, significantly enhancing rider's convenience and those additions, the N-Series now spent from lightweight electric bicycles to high-performance motorcycles, making Niu the most diverse and best-selling product line. In 2024, the N-Series alone accounted for 39% of our total sales volume in China, a substantial increase from just 5% in 2023, demonstrating a strong market demand and the effectiveness of our focused product N-Series, we also build a success on top of our M models. We have further strengthened our M-Series by launching an upgraded version of our classic model. In 2024, we introduced the new MT as an evolution of M-Series, with a fresh and trend-focused upgrade design for the Gen Z users. Returning the classic M-Series design language, the MT introduced new color options, enhance the rider comfort and smart features. It's lightweight and compact frame make it ideal for female riders and the first-time the last signature series, we focused on upgrading is our U-Series. We launched two core products during 2024, the UMax and U1E . The UMax is a product design for young riders who seek a blended style, comfort, and high performance. With the larger form factor, UMax enhanced visual appeal and riding comfort, it boost an impressive 160-kilometer range, and the boost driving mode for rapid U1E is our first female-focused scooter, which upgraded with new color schemes, economic improvement in handle and seat positions, and easy-to-use smart functionalities, and also option to include a baby seat amongst besides the M and U-Series, in 2024, we further expanded our core lineup with the launch of FX motorcycles, which has quickly become a recognizable established alternative alongside our classic halo life and M, FX series embodies a sporty design, featuring eagle eye highlights and intricate design details, adding sophistication and both presence to its [landmark]. The FX Pro version leading in performance equipped with 45 amp power batteries, a 1,500 watts motor, a top speed of 55-kilometer per hour, and an impressive range of 130 FX series is also debuted as part of co-brand initiative with Game for Peace, one of the China's top mobile gaming, with 70 million MAUs. This collaboration introduced a limited edition model inspired by the game's look, providing fans and riders with unique line of style performance and cultural relevance. The co-branded FX series strengthen Niu's position in pop culture, expanding brand awareness and engagement among younger by focusing in our core series and the strategic launch products tailored to specific customers' needs, we have reinforced our leadership in urban mobility. The market strong exceptional models underscore the effectiveness of our focused product strategy, driving both volume growth and brand recognition. In 2024, our core product series, the [ N, M, U and MAX] accounted for 87% of our total sales volume in looking forward in 2025, we remain committed in our focused product strategy, enhance our core Niu product series, while ensuring a broader market coverage to meet the diversity of riders. We have exciting new products in pipeline in corporate innovation, a key update to adapt the evolving market dynamics and specific user alongside with our product strategy, our commitment to deep cutting-edge technology is also reflected in its -- in the significant investment and progress we have made. In 2024, we focused on enhancing the riding technology, including key features such as dual-channel ABS, screen meter navigation, millimeter wave radar, full-color TFT display with magic wheel, all of which has been well received by our 2025, we are further advancing rider intelligence with focus on three core pillars: the seamless driving experience, the AI smart control assistance, and smart ecosystems. Those innovations will redefine the riding experience, bringing a new level of intelligent, safety, and connectivity to our create a more seamless intuitive interaction between riders and scooters, we plan to smart hardware advancement that prioritize personalization, convenience, and intelligence, such as building high-definition touch screen with integrated operating systems. Our AI-driven riding assistance enhanced responsiveness and adaptability, such as voice and gesture-based control. And last but not least, our smart ecosystem broadens the functionality of our new products through partnerships with third-party alongside our product technology advancement, we have made significant strategy in expanding our sales channels, ensuring our product reach a broader consumer base. With a strong focus on penetrating the previously underrepresented market in China, we have strategically expanded our retail 2024, we successfully opened approximately 900 new stores, leveraging the momentum from our new product launches and refreshed brand positioning. Among those 900 stores, around 50% of them opened in the Tier 3 cities, representing our effort in spending the lower-tier with the regained channel momentum, in 2025, we plan to open another 1,000 to 1,500 stores, further strengthening our market presence. As our sales channel expansion accelerate, we expect to see a direct impact on sales volume growth in the coming in 2024, we focused our marketing efforts on targeting premium consumers and Gen Z riders, further solidifying Niu's brand presence through a key product launches, strategic IP collaboration, and extensive social media initiatives have strengthened the brand recognition. In August, we received official certification from authorized market research institute recognize Niu as a leading global brand in premium smart electric mark the launch of NX Hyper, we debuted with a series of high-profile ride test, including the China first track standard test drive event for electric two-wheelers. Held in Beijing, this event attract over 100 media professionals, industry experts, and influencers, providing an unparalleled first-time experience of the NX Hyper exceptional setting a new performance benchmark within the electric motorcycle segment, NX Hyper has reinforced Niu's premium brand positioning. To broaden our brand influence and deepen our connection with Gen Z consumers, we leveraged high-impact IP collaborations, including eSports partnership, active participation in animation exhibitions and a series of off-line campus events across 130-plus our most significant collaboration was with Game for Peace, the top mobile game with 70 million MAUs. Through this partnership, Niu introduced two co-branded scooters featuring game-inspired theme and the limited edition design seamlessly blend the digital entertainment with the real-world writing 2024, we also implemented a matrix marketing approach to enhance the brand communication and digital engagement. Our strategy to integrate Niu's own original brand content across the four official brand accounts, the regional customized content with 40-plus localized accounts, and the store level self-operated content across 3,000-plus store accounts, creating a scalable and highly effective social media matrix. This multitiered strategy has generated over 20 billion views, marking a 5x increase compared to our 2023 turning into the overseas market. The overseas market witnessed a substantial 64% growth in sales volume in Q4 and reaching a 52% volume growth in the full year 2024. This year, Niu's overseas segment demonstrated strong growth, driven by strategic market expansion and operational optimization. We continue to develop our two core product lines, electric two-wheelers and the micro mobilities, while strengthening our foundation in product innovation, operation and brand the electric two-wheeler segment, we leverage our cutting-edge technology and unique design products, adapting them to local market needs. A key focus in 2024 was establishing direct distribution operations in our core markets, such as Germany, Italy, France, and the United laid the foundation for direct distribution by setting up local entities, hiring team, onboarding partners, and developing a localized sales network. With the infrastructure in place, we expand our sales network to over 120 active dealers by year-end and plan to double this number by first half of 2025. Our electric two-wheeler product lineup in 2024 also spent daily commute -- community electric moped to high-speed and high-performance electric Q4 2024, we showcased our key electric motorcycles at ECMA in Milan, Italy, reinforce our presence in the premium electric motorcycle space. As part of our product expansion strategy, we launched the NX series, the international version of NX premium motorcycle and the F-Series, the global adaptation of our F-Series. Both product lines were well received in the key market, general industry attention and strong also upgraded our off-road motorcycle XQi3 with OTA upgrade, a boost power to 10.6 kilowatts, improved acceleration and reached a top of 80-kilometer per hour. Our XQi3 has also received the prestige IS Design Award 2025, making another legendary new for the micro mobility market, in 2024, we prioritize expanding retail channels in key markets, strengthening our sales network and market presence. The expansion drove a significant volume growth. Our retail footprint now includes 800-plus stores in Best Buy, 160 stores in Walmart, and 1,000 stores in Kohl's and 200 stores in MediaMarkt in Germany, and the full coverage EXPERT ensure wide accessibility with greater brand visibility across major global retail on the micro mobility market, we faced significant headwinds in 2024 due to the US tariff increase on the China export, which shows from 0% to 25% last year on the key micro mobility products. The sudden cost surge (inaudible) margins, leading to a negative gross margin on our product shipped from China to the US for the large part of the year in mitigate those challenges, we initiated setting up production of the US version of kick scooters and micro mobility products in Southeast Asia starting in the second half of Q4 -- second half of 2024. Now in January 2025, we successfully shipped our first South Asia local manufacturing units to the United States, marking a crucial step towards supply chain looking forward, we remain highly optimistic about the China market and overseas market. Now for the China market, building on the strong foundation established in 2024, on the product side, over the past year, we refocused our product portfolio around our core N, M, U and F-Series, reinforcing our leadership in key market smart technology advancement have also shown early signs of success, with strong traction from customers and a clear road map for further innovations in 2025. We're also standardizing our key product platforms, which will improve the R&D process and also reduce the bond cost. This will help us to improve the gross margin in the China market, which already reflected the early success in Q1 technology advancement and standardized platform has also prepared us well to roll out two new series for 2025 in China, one to address a new electric bicycle standard in China, and one to address the premium the sales channel in China, we have also regained channel momentum as we added around 900 stores in 2024 for the first time in the last three years. We're in the process of rolling out the new VI upgrade for our retail stores, which will be implemented for the 1,000 and 1,500 new stores targeted this lastly, with the new product roll and the channel expansion, we also plan to increase our branding and marketing efforts significantly in 2025 in China, targeting a broader range of consumer segments, both online and off-line. We plan to drive this momentum gaining the key social media platform in 2024 and triple our online exposures in have observed early signs in fast growth in Q1 this year with our retail sales year-to-date increased by 50%-plus. We plan to continue to rise this growth momentum for the rest of the for the overseas market in 2025, we expect our strategic effort to drive tangible growth across key markets. The electric two-wheeler segment is poised for a strong rebound with our initial operation setup completed and well-established local sales network now in the key products are already built in ECMA 2024 and receive well response from dealers and consumers. The upgraded XQi3 will also provide additional growth catalysts for the off-road motorcycle market. The 120 existing dealers and additional 100-plus new dealers will help to drive the retail the micro mobility market, we have reached a solid retail coverage in the key countries by end of 2024. Those will provide a solid foundation for the baseline growth for 2025. In addition, we expect to enter new retails in the key markets such as Italy, France, and United the kick school market has faced short-term challenges due to the increased tariffs, our supply chain adjustments are now fully implemented, position us to restore profitability and drive sustainable growth in the coming with those initiatives in place, we expect to reach 1.3 million to 1.6 million unit sales for the year of 2025. With that, let me turn the call to Fion. Zhou Wenjuan Thank you, Yan, and hello, everyone. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded Excel format figures to our IR website for your easy reference. As I review our financial results, I'm referring to the fourth-quarter figures, unless I say otherwise, and all monetary figures are in RMB, if not Yan just mentioned, our total sales volume for the fourth quarter was 227,000 units, an increase of 65% compared to the same period of last year. Specifically speaking, China sales volume was 182,000 units, 80% of the total sales volume and overseas was 44,000 units, taking around 20% of the total sales volume. And for the full year 2024, the total sales volume was 924,000 units, including 759,000 units in China and 165,000 units revenue for the fourth quarter was RMB819 million, up 71% compared to the same period of last year. To break down the scooter revenues by ranging, scooter revenues in China were RMB646 million, up 82% year-over-year and represented 88% of the total scooter revenues. The increase was mainly due to the increased sales volume and revenue per scooter in e-scooter ASP reached [RMB3,544], [15%] higher on a quarter-over-quarter basis and 10% higher on a year-over-year overseas scooter revenue, including kick scooters, e-mopeds and e-motorcycles were RMB87 million, representing 12% of the total e-scooter revenues. The branded e-scooter ASP decreased to nearly RMB2,000, down around 10% year-over-year and mainly driven by the higher sales contribution of the spare parts and services revenue were RMB86 million, up 33% year-over-year and representing nearly 10% of the total revenues. The increase was mainly due to an increase in accessory spare part sales in both China and international the full year 2024, the total revenue increased by 24% to RMB3.3 billion. China scooter revenue as a whole saw nearly 28% year-over-year lift to RMB2.6 billion. The overseas school revenue increased by 14% to RMB397 million. The total overseas revenue, including scooters and non-scooters contributed to nearly 13% of the total let's take a look at ASP in 2024. The overall scooter ASP saw slightly decreased from RMB3,323 to RMB3,203. Among this, the China scooter ASP increased from RMB3,344, to RMB3,377 and driven by an increase in proportion of the premium series sales volume, which has a higher ASP. The overseas branded scooter ASP was RMB2,402, a 25% decrease due to the change in the overseas product mix, with the kick-scooter accounting for approximately 98% of the total overseas scooter sales the gross margin for the fourth quarter was 12.4%, a decrease of 6.6 ppt compared to the same period of last year. And the decline in the overall gross margin was primarily driven by the shift in the overseas product mix and 25% in the US tariff, both of which we mentioned last addition, the year-end overseas holiday season incentives further impacted the margin this quarter. And these three factors negatively impacted both overseas and overall gross margins. However, the China gross margin improved by 1.5 ppt compared to last the full year 2024, our gross margin was 15.2%, down from 21.5% in the previous year, representing a year-over-year decline of 6.3 ppt, a 2.6 ppt decrease driven by the overseas factors, a lower-margin product mix and the 25% US tariff and the platform incentives during the holiday the other 3.7 ppt gross margin declined driven by the domestic market as we continue to allocate a portion of our margins to support the domestic distribution partners. Additionally, our premium lead acid motorcycles yield lower margins compared to the same tier lithium ion quarter OpEx was RMB193 million, RMB53 million lower than the same period of last year. Selling and marketing expenses were RMB136 million, RMB55 million lower than last year and mainly due to the decrease in rental and advertising and promotion activities in overseas and development expenses were RMB39 million, RMB3 million higher than the fourth quarter of 2023, mainly due to the increase in staff costs and share-based compensation. And G&A expenses were RMB18 million, around RMB1 million lower on an annual basis, mainly due to the decrease in allowance of doubtful accounts of RMB1 the full year 2024, the OpEx was RMB750 million, 16% lower than 2023. And operating expenses as a percentage of revenue was nearly 23%. Selling and marketing expenses were RMB490 million, RMB6 million lower than last year and about 15% of the and development expenses were RMB130 million, RMB21 million lower than last year, about 4% of revenues. And G&A expenses were RMB131 million, around RMB114 million lower than last year, about 4% of revenues. Non-GAAP OpEx were RMB727 million, representing 22% of revenue compared to 32% in the fourth quarter, we had a net loss of RMB73 million and non-GAAP net loss of RMB67 million. On a full year basis, we had a net loss of RMB193 million and non-GAAP net loss of RMB169 to our balance sheet and cash flow. We ended the year with RMB1.1 billion in cash, restricted cash, term deposit and short-term investments. On an annual basis, operating cash flow was inflow RMB55 million, primarily because we made a net income after adjusting for noncash our Q4 CapEx was RMB38 million. For the full year, CapEx was RMB120 million, RMB41 million higher than last year because of the store expansion and module cost in the domestic now let's turn to guidance. We expected the first quarter revenue will be in the range of RMB631 million to RMB707 million, an increase of 25% to 40% year over year. And the sales volume for 2025 are expected to be in the range of 1.3 million to 1.6 million units, as Yan just be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectations, which is subject to change due to uncertainties related to various factors. And with that, let's now open the call for any questions that you may have for us. Operator, please go ahead. Operator (Operator Instructions) Yating Chen, CICC. Yating Chen This is Yating from CICC, and I have two questions. The first question is what is your sales target for kick-scooters in 2025? And considering the difficulty of achieving profitability in the kick-scooter business, what is your long-term plan for this business? This is my first question. Yan Li Right. So I think it's a good question. So for the kick-scooters, we're looking at -- last year, we did about 160,000-plus units. So we're looking at anywhere between roughly 30% growth to -- 30% to 50% growth for 2025.I think with the kick-scooter business, I think investors too concerned about profitability. The issue with the last couple of years are -- one is actually due to the high US tariff as expected. And that, as we mentioned in the call, that being actually addressed -- starting to address last year, but really the first scooter being out of the market is really from Southeast Asia manufacturing actually January this actually, the tariff will not be higher from 25% to potential 45% this year. So old players -- or old product old players actually increased the retail price in the United States. So that actually basically gave us a good room for margins. So we expect the kick-scooters actually to return profitable this year. Yating Chen Okay. Thank you very much. And my second question is about domestic market. Considering your new product planning and the channel expansion plans, what is your outlook for average selling price and the gross profit margin in domestic market in 2025 because we have seen a significant decline of gross profit margin in 4Q '24. Zhou Wenjuan Okay. This is Fion. I'll take this question. Actually, in 2025, we already finished quarter one. Due to the trends from the consumer markets, our high end or so-called premium series products are still popular in our -- from our consumers' demand, which means the retail price -- the majority of our sales are coming from the retail price above RMB5, is maintaining the same level in 2024. And this year, since we are going to launch several series of the new models, as Yan just mentioned, to demonstrate our product smart functions and also the design advantages, we are going to maintain the high-end market player in the two-wheel market in the domestic we expect the ASP in the domestic market will not drop, but we may expect a slightly increase in our ASP in the domestic market, but not a dramatic increase in ASP since right now, our premium series are almost the 70% in our domestic sales. So in 2025, we expect the concentration among the premium and mass premium product series, which will help us to get that slightly increase in the ASP in domestic talking about the gross margin in the domestic market, actually, along with the sales volume in the domestic market increase, we may get the benefit from the scale of the economy, especially in the bond cost, and also the other production costs, like the staff cost and the amortization on the module cost, those non-bond cost, which will help us to improve the gross margin in the domestic market we also think about the extra portion of the margin I give up on -- to our sales distributor partners, we may think about to regain those gross profit from 2025. But it's still in the decision-making process. Along with the new stores opened, continued, if we get the success store expansion, we will delay those profit going -- but both factors will give us an upside from -- in the gross margin, either of them will help us improve the improve the domestic gross margin. So regarding the ASP and gross margin, we expect a positive effect in 2025. Yating Chen Thank you for your sharing. It's very clear, and we are -- and we expect the company's -- the positive change in 2024-2025. Thank you very much. That's all my questions. Operator (Operator Instructions) Alan Lee, Guotai Junan Securities. Alan Lee Okay. Thank you for taking my question. I have two questions here. The first one is that we have provided guidance on annual sales, which shows a high growth rate. May I ask if you can provide guidance on the expected net profit margin by 2025, and how much net profit margin can the company achieve within two or three years? Zhou Wenjuan Well, actually, 2025 is a recovering year to us, and we are not going to hear the net profit with the market yet. But 2025, we are able to get the profitability overall for the overall listing we will -- since we are going to release the quarter -- quarter results every quarter, this frequency is good enough for the investor to follow us on the performance on the net profit. So normally, we will follow the general practice as the other US listing company. We only provided the guidance to the sales volume, not the top line. Top line, we will give the guidance every quarter. Alan Lee Okay. And my second question is that which quarter in 2025 is expected to see the company's net profit come from loss to profit? Zhou Wenjuan Well, good question. Actually, the quarter -- fourth quarter is the last quarter in our industry. This industry is quite seasonal. So for the other competitors, actually, the first quarter is the next season as well. We expect to see the quarterly profit in the second quarter, which means from April to June, those three months, we will get the quarterly profits this the second quarter is also kind of like the second peak quarter every year. It will contain around 25% to 30% of the revenue each year. And also for the international market, in the second quarter, no matter the weather or the logistics, back into the normal both the domestic market and the international markets are right on the right track in the second quarter. So we expected the second quarter will be the profit. Alan Lee Great. Thank you for answering my question. That's all, yeah. Operator At this time, I show no further questions in the queue. I would now like to turn the call back over to Mr. Li for closing remarks. Yan Li Thank you, operator, and thank you all for participating in today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you. Operator This does conclude today's conference call. Thank you for your participation. You may now disconnect.
